The housing market continues to generate a myriad of Internet articles. And because of the direct hand-in-hand relationship between housing and relocation, we are paying attention. Here is a sample of some of the highlights from the past week.
Buying a home as an investment has taken quite a hit in the recent years. Previously, home values inclined at such a level that homes were considered a no-brainer investment. Now with real estate values deflated and seemingly continuing to deflate, there are some legitimate questions being asked about whether it is a bright idea to buy. This article points to recent condition that housing essentially keeps up with inflation and will not see increases until the air is let out of the bubble. From a selling perspective, this prompts an interesting dilemma, reinforced by many of the lending institution’s philosophy – selling now would result in a greater return than in the near future. In other words, as real estate values decline, the sellers will receive less return on their property investment. It does prompt the question and belief that selling now, at a loss, may be better than selling later at a greater loss. This really is a short-term perspective and one that can be ridden out, but for those relocating now or looking to relocate now, a fundamental question to consider.
Not only is the actual act of buying and selling real estate is changing, but also so is the ideal. Previously, the McMansion, giant 3,000 plus SQF home was considered the suburban end zone. Truilia’s research in 2010 indicates that the ideal has moved from this 3,000 SQF plus home has now changed to less than 2,000 SQF. This is a monumental shift that affects not only new home construction but also an enormous inventory of houses that exceed an ideal. Compromise is a magic word in real estate, generally one taken in the direction of things one can do without. This mental shift does the opposite and will be truly interesting to see how it plays out.
Lastly, for first time homebuyers, a sizeable portion of our relocation audience, here are a list of things to remember and do in the new purchase. They include: not going to the purchase range maximum, selecting the right mortgage product, and prequalifying early in the process. All three of these recommendations affect all homebuyers and arguably better applied can help provide a more stable real estate landscape.